Hertz negotiates settlement with Advantage Rental Car
Clients Hertz Global Holdings, Inc.
Jones Day was retained by Hertz in October of 2013 with regard to its significant exposure to Franchise Services of North America d/b/a Advantage Rental Car Company ("Advantage"). Jones Day had previously provided antitrust advice to Hertz with regard to the acquisition of the Dollar and Thrifty brands. As part of the same transaction, Hertz was required by the Federal Trade Commission to spin off Advantage into an independent competitor. Hertz leased to Advantage over 20,000 vehicles. Advantage experienced a severe liquidity crisis in the fall of 2013. Jones Day advised Hertz in extensive out of court negotiations to restructure Advantage. Ultimately, the parties were not able to reach an agreement so Advantage filed for chapter 11 in November of 2013. Jones Day eventually negotiated a settlement agreement with Advantage that provided for an accelerated time frame to return the leased vehicles, cash payments for the use of the vehicles and other services, and full global mutual releases. Hertz was also able to acquire certain airport concession agreements from Advantage in the spring of 2014. Advantage was later bought by hedge fund Catalyst Capital out of Toronto.